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Germany Manufacturing Growth At 29-Month Low

German manufacturing sector growth eased to its lowest in nearly two-and-a-half years in October as orders dropped for the first time since late-2014, final data from IHS Markit showed on Friday.

The manufacturing purchasing managers’ index, or PMI, dropped to 52.2 from 53.7 in September.

The flash reading released on October 24 was 52.3. The reading fell for a third month in a row in October.

Any reading above 50 indicates expansion in the factory sector.

New orders dropped for the first time since November 2014, led by intermediate and capital goods sub-sectors. Export sales decreased for a second straight month and at the fastest pace in over five years.

Meanwhile, employment grew solidly though the pace of hiring moderated to the slowest since February 2017.

Cost pressures intensified with input price inflation rebounding from a 12-month low, while output prices rose at the slowest pace since July 2017.

Manufacturers’ expectations for output in the year ahead turned negative, reflecting concerns over a slowing economy, issues across the car industry and geopolitical frictions, the survey found.